I went in 2000, en route to and from Cuzco, and spent a few days in Lima. It is a funny place, under a fog half the time it seemed. On one day we visited an open air piazza where the OAPs were having a Sunday afternoon tea-dance by the sea, full brass band the lot. All a bit of a time-warp.
I do remember being very alert to crime in Peru, but that is par for the course in South America in my experience. We had no problems in Lima, but were very closely eyeballed by a group of three guys in one of the tourist street running off the main square in Cusco (about to do the 'Oh you've got ketchup on your jacket, let me help you wipe it off' diversion theft).
p.s. No idea where pueblo libre is, but the name alone sets of some alarm bells!